The boss of Exeter Airport has urged the Government to step in and protect the aviation sector and thousands of workers as airports are forecast to lose £4billion because of the coronavirus outbreak.
Matt Roach, managing director of Exeter Airport, said regional aerodromes had been the worst hit economically by the pandemic and wants Westminster to intervene with a range of fiscal and financial measures.
He particularly singled out a suspension of Air Passenger Duty (APD) for at least six months to stimulate increased airline activity.
He is also backing other measures advocated by the Airport Operators Association (AOA) and its chief executive Karen Dee, which it says are vital to protect jobs and support the aviation sector through the Covid-19 crisis.
These include relief from Business Rates payments for 2020-2021 in line with the relief granted to the hospitality and retail sectors, which would aid companies’ cashflow.
The AOA also wants a Government guarantee to support, in some form, UK airports with their employment costs beyond the October end of the Coronavirus Job Retention Scheme which has paid for furloughed workers.
It is also calling for funding for the aviation sector’s regulator, the Civil Aviation Authority, for the 2020/2021 charging period.
The demands follow the publication of analysis by York Aviation, released by the AOA, which said member airports are set to lose £4billion in revenue by the end of 2020 as a direct result of the pandemic. It said passenger numbers have dropped by 99% with smaller regional airports the worst affected.
Exeter Airport has already announced that 96 jobs are under threat at the airfield, with a range of roles, including baggage handlers, air traffic controllers, ground crew, security and firefighters, under consultation.
Mr Roach said: “As demonstrated by this new analysis, UK regional airports have been and will continue to be the worst impacted by the coronavirus crisis, with slower bounce back, with greater lost demand and lost connectivity.
“The report covers airports only and there will undoubtedly be a multiplier effect on the businesses and the wider community around UK airport sites.
“Such losses undermine the ability of airport business to power the future prosperity of their local economies, forgoing crucial investment projects and, unfortunately, causing job losses.
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“Of particular interest to Exeter Airport is the request for temporary suspension of APD, which would be an important boost for our region,” he added. “APD is one of the highest, if not the highest, tax of its type in the world. It adds a significant amount to the price of tickets departing from UK airports, which ultimately has the effect of dampening passenger demand and/or limiting the operating revenues that can be achieved by airlines from ticket sales. T
“he temporary removal of APD would potentially stimulate demand for travel and/or enable airlines to temporarily support the commercial viability of routes that might otherwise have to be withdrawn.”
The AOA has said that regional airports are experiencing slower bounce back, with greater lost demand and lost connectivity.
During 2020, London airports are expected to handle a total of 109million passengers, compared to 60million at the UK’s regional airports, whilst the majority of lost connectivity is expected to come from regional airports. In 12 months’ time about 80% of lost routes will be from the UK regions
Exeter Airport is part of Regional & City Airports (RCA), the UK’s leading regional airport operator which also owns Bournemouth Airport, Coventry Airport, and Norwich Airport, and operates Blackpool Airport and Solent Airport Daedalus on behalf of their owners.
RCA also operates XLR Executive Jet Centres (XLR), the boutique FBO (fixed-base operator) business. XLR has centres at Birmingham, Exeter and Liverpool airports.
